Singapore-based property developer Capital World has set its sight on Pengerang Integrated Petroleum Complex (PIPC), one of the major oil and gas hubs in Southeast Asia, to develop 207.5 acres township.
PIPC is expected to generate thousands of job opportunities by 2020, driving the demand for the property sector in Pengerang.
And to make the most of the housing demand, Capital World on Thursday said its unit, Baiduri Megaria Sdn. Bhd., has agreed to buy Malaysian real estate firm Kekal Efektif for 63 million ringgit (S$20.6 million).
Kekal holds the joint development right to five plots of 99-year leasehold land owned by Yayasan Pelajaran Johor - an education foundation established by the Johor State Government.
Development will take eight to 10 years and will be a township comprising residential properties, shops and offices.
Upon completion of the acquisition, Capital World will assume the joint development right to develop a township at Pantai Timur in Johor.
The township is located along Jalan Kg Punggal - Desaru and is about 22 kilometres from the north-east of the Pengerang Integrated Petroleum Complex (PIPC) at Pengerang.
PIPC is one of the major oil and gas hubs in South-east Asia, which is expected to generate thousands of job opportunities by 2020, hence driving the demand for property in Pengerang.
"The residential development will be timely to capture the rising housing demand of the upcoming Pengerang oil and gas hub," Chief Executive Siow Chien Fu said in a statement.
Shares in Capital World fell 3.5 percent to S$0.08 on the Singapore Exchange.